As numerous readers of this website are already aware, many of the top law firms pay associates a set amount of money based on the year an attorney graduated from law school.  Indeed, salaries in Biglaw recently increased, and this website covered at length how many of the top law firms copied the salary scales of other firms to stay competitive with one another.  As a result of this somewhat uniform pay scale, it is usually pretty easy to find out what associates earn at many of the top law firms.  In fact, some directories even publish the pay scales of many Biglaw shops in order to increase transparency.

However, the vast majority of attorneys do not work in Biglaw.  In addition, many attorneys at Biglaw shops might not be on a partnership track, and may not be paid the same amount of money as partnership-track associates who work at these shops.  In any case, most attorneys work at firms where salaries can vary widely from attorney to attorney

Of course, there are some criteria that are used to base salaries at many non-Biglaw firms.  These factors include experience, practice area, and a number of other considerations.  However, the most important factor that is assessed when awarding salaries at many law firms is how little a firm can pay an associate without upsetting them.  Many attorneys who work at non-Biglaw shops make less money simply because they previously worked at a job that paid less than the market rate.  In addition, other associates earn lower salaries simply because they did not protest their lower salary to management at their firms.

One of the ways that firms can oftentimes get away with underpaying associates is by encouraging people not to share salary information.  In fact, I distinctly remember two times during my career when bosses of mine suggested that I not share salary information so that I avoided creating any tension at the firm.  In addition, sharing salary information is extremely awkward, since knowing that someone makes more or less money than you can impact personal relationships.

Nevertheless, having a better understanding of how much money other attorneys earn at your firm can help attorneys negotiate higher salaries.  For instance, I had a buddy at a former firm who graduated from law school several years before me and who had worked at the shop for years prior to my arrival at the firm.  I shared my salary information with this attorney, and he was shocked to discover that he was paid less money than me and some other more junior associates.  My friend was an extremely experienced attorney, and he probably made less money simply because he earned even less cash at the beginning of his career, so the firm could get away with offering him less compensation.

My friend decided to discuss his salary with some of the partners at the firm, and he noted that many of the junior associates were making more money than him.  Of course, the partners had no excuse for why this attorney was making less money, and they did not want to lose a qualified attorney.  My buddy eventually received a sizable raise, and if he was not aware of my salary information, the firm could have continued to take advantage of my friend.

There are some who think  it is not polite to share salary information, and that sharing compensation numbers could create a hostile atmosphere at a firm.  This is nonsense.  Sharing salary information is only awkward if firms use ignorance to take advantage of attorneys who should be earning more money.

Furthermore, it is important to note that there are many public policy reasons why associates should share salary information with one another.  The main way that associates can discover if firms are discriminating against them on the basis of race, gender, or another protected class is through exchanging salary information.  This is why sharing salary information is typically protected by law, and associates should not be ashamed to discuss how much money they make with one another.  Indeed, this website has covered all of the gender discrimination lawsuits filed against many law firms, and it is much harder to discover if there is an illicit pay discrepancy between attorneys if individuals do not share salary information.

Of course, firms can avoid all of the drama of paying associates different sums of money by just giving everyone the same salary depending on when they graduated from law school.  This is what Biglaw firms do, and this lessens the risk of being accused of illicit pay discrepancies or creating drama at a firm.  Yes, compensation can and should vary based on the performance of an attorney, but differences in compensation can be doled out in the form of bonuses rather than varying salaries.  If all firms simply adopted a pay scale based on experience and varied compensation with bonuses, there would be more transparency and fewer reasons to share salary information.

However, so long as firms try to screw their associates by paying them the least amount of money possible, associates should share salary information with each other.  There is no other way to ensure you are not being underpaid by your firm or if a shop is being discriminatory in how it doles out compensation.

Jordan Rothman is the founder of Student Debt Diaries, a personal finance website discussing how he paid off all $197,890.20 of his college and law school student loans over 46 months of his late 20s. You can reach him at Jordan@studentdebtdiaries.com.